Pack Your Bags With Proper Financial Practices

Traveling internationally can be one of life’s most rewarding experiences: new cultures, amazing food, and unforgettable memories. But if you’re not careful with your money, those experiences can come with unnecessary costs and stress. After traveling to over 18 countries, I’ve learned a few things about where the hidden costs are and how to avoid some of the mistakes I made.

The good news is that a little preparation goes a long way. Here are 10 smart money tips for international travel that will keep your wallet safe, maximize value, and help you avoid common mistakes that are easy to fall into.

1. Use a Travel Credit Card With No Foreign Transaction Fees

Many credit cards charge around 3% on every foreign purchase. That may not sound like much, but on a $3,000 trip you’d be wasting almost $100 in fees.

Cards like the Chase Sapphire Preferred/Reserve, Capital One Venture, or Amex Platinum waive these fees and often give extra rewards for travel and dining abroad. Some also include travel protections like trip delay reimbursement or baggage insurance (more on that later).

If you are not a frequent traveler and want to avoid a premium card with a higher annual fee, there are cards that meet this criteria as well.

What I like to do for trips is use a credit card for big purchases (flights, hotels, restaurants) and save my debit card for cash withdrawals. I’ll be discussing the debit card withdrawals in the next point.

2. Carry Multiple Forms of Payment

Not every card works everywhere. Some countries are Visa-heavy, while others lean Mastercard. Amex is hit-or-miss outside the U.S although it has become a lot more popular in the past decade. I’ve noticed improvements in western and central Europe with the Amex acceptance.

For these reasons, I like to travel with:

• Two credit cards from different networks.
• One debit card for ATM withdrawals.
• Around $100 USD converted into the local currency

Keep them in different places (wallet, luggage, money belt). If one gets lost or compromised, you’ll have a backup. The cash is helpful for tips, street vendors, and when meeting with outdoor vendors where maybe credit swipe machines are not working temporarily.

3. Avoid Airport Currency Exchanges

Airport currency counters are notorious for terrible exchange rates and high fees. You could lose 10–15% of your money just by changing cash there.

Instead, I like to withdraw cash from a local bank ATM once I arrive at the destination. The best strategy here is to find a local or national bank in the country you are in and use their ATM. There are other ATM chains that target tourists whose business model is to make money just on ATM services. I try and avoid these ones if possible.

Some Examples of ATM’s I’ve used from national banks:

CaixaBank (Portugal)

Santander (Spain)

Piraeus Bank (Greece)

Bancolombia (Colombia)

Unicredit (Italy)

Most debit cards will give you the mid-market rate, which is far better. Just watch for ATM fees as some banks (like Charles Schwab and Fidelity) even refund ATM charges worldwide. My Eastern Bank premium debit card reimburses me for ATM fees.

I’ve noticed that many ATM’s will ask you multiple times if you want to convert the currency before withdrawing. One ATM in Portugal even asked me if I was okay with the risk of currency fluctuations without performing the conversion. Do not do the conversion at the ATM. You will get a much better exchange rate by just using the card in local currency and letting your bank do the currency exchange on the backend, which is usually close to the market value.

4. Notify Your Bank Before You Travel

Few things are more stressful than having your card declined at a restaurant overseas because your bank flagged it as fraud.

Most banks let you add a travel notice in their app or website. It takes 2 minutes and prevents accidental freezes on your account.

I noticed with my Chase credit cards that I no longer need to notify Chase. The card uses AI and data points to know what’s fraud and what isn’t. Having cellular phone service is important for fraud alerts as most card protection measures can be overridden with a text or app notification of flagged spending.

5. Keep a Small Emergency Cash Stash

Cards are convenient, but sometimes you’ll run into places that only accept cash like local markets, street vendors, or small guesthouses. ATMs can also go down or run out of money.

Keep $100–$200 in USD (in small bills) stashed separately from your wallet. U.S. dollars are widely accepted in emergencies, and having backup cash gives you peace of mind. I usually keep some USD and then around $100 in the local currency to have just in case.

6. Always Pay in Local Currency (Not USD)

When using a card abroad, you’ll often be asked: “Would you like to pay in dollars or local currency?”

Always choose local currency. Paying in dollars triggers something called Dynamic Currency Conversion (DCC), where the merchant’s bank sets the exchange rate and it’s almost always worse than your bank’s rate.

I’ve tested this out many times and I always save 3% – 8% when declining the currency conversion. In 2025, most banks can accept charges in other currencies, so you do not need to worry about the home bank having an issue abroad.

7. Use Travel Insurance That Covers Cancellations & Medical

Medical costs abroad can be shockingly expensive if you’re not covered. Even a simple hospital visit could run into thousands of dollars.

Many premium travel credit cards include:

• Trip cancellation/interruption insurance (if your trip is cut short by illness, weather, etc.).
• Baggage delay coverage (covers essentials if your luggage is lost).
• Emergency medical evacuation (crucial for remote destinations).

If your card doesn’t include this, consider buying standalone travel insurance as it’s usually inexpensive compared to the risk. If I plan on being somewhere for my than a week, I will consider the standalone travel insurance for peace of mind. The small fee is worth it in case I get sick, injured, or something comes up while I’m far from home.

8. Track Exchange Rates Before You Go

Exchange rates fluctuate daily. Download an app like XE Currency or Wise to keep an eye on live rates.

This helps me:

• Know whether I’m getting a fair rate at ATMs or hotels.
• Budget more accurately for big purchases like tours or car rentals.

I’ve been to Europe when there is a 30% difference in USD to EURO and other times when the currencies were at parity. It can make a big difference to your total spend after a 10+ day trip.

9. Book Lodging With Flexible Payment Options

Some booking platforms let you lock in your hotel now but pay later at the property. This can save you if exchange rates improve before your trip.

It also gives you more flexibility if your plans change which is something that’s more common with international travel.

10. Get a SIM Card or eSIM for Mobile Banking & Payments

Having mobile data abroad isn’t just about Google Maps and Instagram, it’s critical for managing your money. It’s also a safety measure in case you need to contact someone or get help, especially if traveling alone.

With a local SIM card or eSIM (from providers like Airalo, Holafly, or local telecom shops), you’ll be able to:

• Access your bank’s app securely.
• Get fraud alerts in real time.
• Use mobile payment apps if they’re common in the country (like Alipay, Paytm, or Apple Pay).

It’s usually cheaper than paying roaming charges, and it makes money management seamless. International plans with my home provider have high rates per day when in other countries, so I like to use Airalo or some other e-sim while traveling.

Bonus Tip: Photocopy Your Cards & Passport

Keep a copy of your passport and cards in a safe place (or secure cloud storage). If you lose them, you’ll have all the details you need to contact your bank or embassy quickly.